Google has released a demo video showing some of the features of the much-awaited Android OS, and it’s pretty impressive. It sports many of the features of the iPhone, as well as a few more. For one, it has the ability to be used on a device with a touch-screen, complete with a full web-browser that reacts to flicks of the finger much like the iPhone.

The operating system is Linux-based and open-source in an attempt to generate development for the system. Unlike the iPhone, developers can assemble applications for the device as it is without any sort of special privileges. It plus allows for a maximum degree of customization, in that any part of the operating system can be modified.

The default Android shell supports several more advanced hardware features by default, including 3G network support, playback of AAC/MP3 songs and H.264/MPEG-4 video, and hardware 3D acceleration for games and 3D utilities like a street view in Google Maps. A touchscreen control system is provided from Synaptics.

Interestingly, it additionally sports several features characteristic of Apple and the iPhone. For instance, the full web browser that shows web pages as you would see them on a computer, a touch interface (though not Apple’s “multitouch”). For that matter, much of the interface is highly reminiscent of the iPhone all through the device.

In order to showcase their software, they have additionally created two prototype cell phones. One is complete with real QWERTY keyboard, and the other is prominently a touch-screen much like the iPhone.

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